Markets recover from early losses, end slightly higher on IT strength
Mumbai, July 13
Indian benchmark indices recovered from early losses and ended marginally higher on Monday. The Sensex closed at 77,616.40, up 47.01 points or 0.06 per cent, while the Nifty settled at 24,211, gaining 4.10 points or 0.02 per cent.
The benchmark indices continued to trade above their key support levels, indicating that the broader market trend remained positive despite limited movement during the session. Market sentiment remained cautious amid geopolitical tensions between the US and Iran, which pushed crude oil prices higher.
On the BSE, TCS, HCL Tech, Infosys, NTPC, Kotak Mahindra Bank, Power Grid, ICICI Bank and Bajaj Finance were among the top gainers. Tata Steel, Eternal, IndiGo, Adani Ports, Bharat Electronics (BEL), ITC and Trent were among the major losers.
Most sectoral indices ended in the red. Nifty Financial Services, Bank Nifty, Nifty Private Bank, Nifty PSU Bank and Nifty Financial Services 25/50 declined by up to 1 per cent.
Nifty IT was the top-performing sector, rising more than 3 per cent, while Nifty FMCG fell over 1 per cent. Nifty Media and Nifty MidSmall IT & Telecom also ended higher, gaining over 2 per cent and 1 per cent, respectively.
In the commodities market, Brent crude was trading at USD 77.33 per barrel at the time of reporting, while gold was trading at USD 4,072.34.
Commenting on the market, Riyank Arora, Associate Vice President - HNI & Derivatives, Hedged.in, said, "The market witnessed consolidation after the recent sharp upmove, which appears to be a healthy pause rather than a reversal. As long as benchmark indices continue to hold above their key support levels, the broader outlook remains constructive. Traders may continue to adopt a buy-on-dips strategy while maintaining disciplined risk management."
Market analyst Vipin Dixena said, "Nifty is consolidating in a narrow range while holding above the 50 EMA, indicating the broader short-term trend remains positive. The index is finding support near 24,100, with immediate resistance placed at 24,250. RSI is hovering around 54, suggesting neutral-to-positive momentum without any overbought signals. A decisive move above 24,250 could extend the uptrend, while a break below 24,100 may trigger profit booking."
— ANI
Reader Comments
Good to see markets recovering but I'm more worried about the FMCG sector decline. With inflation already hitting household budgets, falling FMCG stocks don't bode well for the common man. The IT rally is great for investors but doesn't put roti on everyone's table. Hope the government keeps an eye on broader economic indicators.
Interesting dynamics - IT strength against a backdrop of weak banking and financial stocks. The Nifty IT gain of 3% is impressive but the broader market is clearly cautious. I'd be watching crude oil prices closely; if they breach $80, we could see further pressure on the rupee and imported inflation. Buy-on-dips strategy sounds reasonable but only for quality bluechips.
Finally some positivity! My TCS holdings have been doing well. 🚀 But I'm surprised to see Kotak Mahindra Bank and ICICI Bank among gainers while Bank Nifty fell - shows selective buying. The consolidation at 24,100-24,250 range is normal after a sharp upmove as analyst said. Holding above 50 EMA is encouraging. Let's hope Nifty breaks above 24,250 soon!
For retail investors like me, this kind of sideways movement is frustrating. The experts talk about 'healthy consolidation' but small traders are stuck with limited gains. IT sector saving the day is good, but if you missed the IT rally, there aren't many other opportunities. Need more clarity on earnings season to make fresh investments. 😐
Good to see the Sensex closing above 77,600 despite the geopolitical headwinds. The analyst's suggestion of buy-on-dips
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